Fortum soars, deal with Google seen to boost long-term profit

Fortum Oyj

09/09/2026 10:54

Updates share move, adds UPM, analyst comments
** Shares in Fortum FORTUM rise 12.5% after the Finnish energy group signed a long-term power purchase agreement with Google GOOGL.O
** The deal secures nuclear power for Google investments for 22 years and will improve Fortum's comparable return on net assets by about 1.4 pp over time, the Finnish company says
** Google says it will invest €13 billion ($15 billion) in Finland in a data centre and related infrastructure within the next two years
** J.P.Morgan expects the agreement to lift Fortum's comparable operating profit by about €120 million-€130 million once the full 4 TWh volume is contracted
 ** The implied deal price is above 80 euros per MWh, against 2028 forward prices of around 52 euros per MWh, JPM says
 ** UPM-Kymmene UPM.HE rises more than 5%, with analysts pointing to the Finnish forestry group's 12 TWh of standalone power generation in Finland
** "We considered it likely that a similar agreement could happen for UPM in the future as UPM is one of Finland’s largest electricity producers," Danske Bank analyst Antti Jukka Koskivuori says
** Fortum shares rise to the top of STOXX 600 .STOXX and are set for best day since October 2008
($1 = 0.8591 euros)
     

 (Reporting by Boleslaw Lasocki and Agnieszka Olenska)
 ((boleslaw.lasocki@thomosnreuters.com))